Offshore Account Penalties to Double With Start of 2014 OVDP Program
On Wednesday, June 18, 2014, the IRS announced that it was trying to make it easier for taxpayers to come clean about offshore accounts. The Service made changes to two key programs – one intended for taxpayers that willfully sought to evade tax laws, and another for those that avoided taxes despite trying to comply […]
Should I Stay or Should I Go? Answers to the Most Frequently Asked Questions Regarding OVDP
As a tax attorney specializing in OVDP, nary a day goes by that I don’t get a call from a person inquiring about the OVDP program. The questions asked are relatively the same. After a while, I began to make a list of the most frequently asked questions. Below are my answers to them: Why […]
Fraud Technical Advisors: An End-Run Around Tweel?
United States v. Tweel is the most famous example of a motion to suppress in a tax case. In Tweel, the Fifth Circuit Court of Appeals held that it constitutes trickery, fraud, and deceit for the IRS to conduct a criminal investigation under the guise of a civil examination. Because of how fact-sensitive the holding […]
Lowering the Bar for Willfulness for FBAR Penalties
The IRS has authority to assert FBAR civil penalties. Before delving into the FBAR abyss, this is a good time to debunk some FBAR myths. First, there is no such thing as an FBAR penalty within the Offshore Voluntary Disclosure Program (OVDP). The FBAR penalty exists only outside of the OVDP framework. However, there is […]
“FATCA” Law Is Striking Fear Into Foreign Banks
Law That May Reduce Tax Evasion Goes Into Effect On July 1 The Foreign Account Tax Compliance Act (FATCA) became law in the United States in 2010, but the clock is still ticking on its implementation. The clock will stop ticking on July 1, 2014. The U.S. Congress and the Obama Administration pressed for FATCA […]
What Can A Tax Attorney Do For Me?
Of the professionals that you can turn to for help with IRS problems, tax attorneys can most effectively help you sort through legal issues. Hiring such an expert is the most efficient way of getting on the right track. Here are seven reasons that make them valuable and indispensable: Reason # 1: Client-attorney Confidentiality All […]
Lifting the Veil on the Civil FBAR Penalty
It should come as no surprise that the IRS has authority to assess FBAR civil penalties. However, what might come as a surprise is that an FBAR violation doesn’t automatically mean that a penalty will be asserted. Why not? Examiners are expected to exercise discretion, taking into account the facts and circumstances of each case, […]
No Laughing Matter: The Criminal Consequences of Failing to Report Foreign Bank Accounts
United States citizens, residents and other persons must annually report their direct or indirect financial interest in, or signature authority over, a financial account that is maintained with a financial institution located in a foreign country if, for any calendar year, the aggregate value of all foreign accounts exceeded $ 10,000 at any time during […]
Liens and Levies Make the IRS a Collection Agency on Steroids
Sometimes the problem with “food for thought” is that it can almost choke you with its stark simplicity. Take our tax system, for example. The federal government prints our money, regulates the places where we keep it and has vast powers to take it away from us if we don’t give them their cut. The […]
IRS Due Process Collections — Placing a Velvet Glove on the Wrecking Ball
Due process is, according to Black’s Law Dictionary, “a course of legal proceedings … which have been established … for the enforcement and protection of private rights.” Anyone facing an IRS federal tax lien or levy has already experienced the preliminary due process following the IRS determination that more taxes are owed. Said due process […]